Government IT workers brace for outsourcing news

By DAVID JACKSON and CHRIS LAMBIE Staff ReportersPublished November 7, 2012 - 7:31pm Last Updated November 7, 2012 - 7:58pm

Announcement on contracting out to IBM expected Thursday

Joan Jessome, president of the Nova Scotia Government and General Employees Union, said 73 unionized government IT workers have been summoned to a ‘tech change’ meeting scheduled for 10 a.m. Thursday. It’s expected those jobs will be contracted out to IBM Canada. (TED PRITCHARD / Staff / File)

Dozens of government information technology workers are bracing for news Thursday morning that their jobs will be contracted out to IBM Canada.

Joan Jessome, president of the Nova Scotia Government and General Employees Union, said 73 union members, including a handful in Truro and Sydney, have been summoned to a “tech change” meeting in Halifax at 10 a.m.

“That means that your members are going to be relocated, or laid off, or something,” Jessome said.

Another 35 non-union employees could also be affected by the outsourcing.

The union has been concerned about the province negotiating with an international firm to set up a “global delivery centre” in Halifax, with the province being the first client.

Government officials told the employees in late September that their jobs could be contracted out.

The work would involve administration of the massive SAP computer system, which contains provincial budget, procurement and payroll information, as well as numbers for dozens of other public bodies.

Jessome said she met Wednesday afternoon with staff from the premier’s office, but they didn’t provide any details on the outsourcing. She said union officials will get information at an 8 a.m. meeting Thursday, and she confirmed the tech change meeting is regarding SAP.

“We’ve been told that. That’s been verified.”

Later Thursday morning, Premier Darrell Dexter is scheduled to make an “economic development announcement” at the Nova Scotia Community College’s Dartmouth waterfront campus. Jessome said that’s when the public will learn about the SAP plan.

A source confirmed the announcement is about IBM setting up shop in the province.

“It’s definitely a business attraction deal,” said the source.

Nova Scotia Business Inc. has been dealing with IBM, said the source. Officials with the provincial government’s business lending agency refused to discuss the matter Wednesday.

The premier’s office was equally close-mouthed on the subject.

“They’re very hush-hush about this for some reason,” said the source. “It’s deemed to be a big deal.”

Developer Joe Ramia, of Rank Inc., has said he wants his $500-million Nova Centre project slated to be built on Argyle Street to become a financial services hub, and a company like IBM might fit into that plan. Ramia could not be reached for comment Wednesday.

Jessome said workers have told her the government is looking at a 10-year, $100-million contract.

The non-union employees run the system for the district health authorities and the IWK Health Centre in Halifax.

Jessome said employees are concerned about the security of Nova Scotia’s and Nova Scotians’ sensitive information if it is administered by a private company.

Finance Department spokeswoman Michelle Lucas said in September that protection of information would be paramount. She also said all affected government employees would be offered a job.

Jessome has said 90 per cent of the unionized employees have indicated they wouldn’t move to the private company.

Concerns include losing the security of being in the union, a longer work week, a different pension plan and the possibility of months-long placements at the company’s other locations, such as China and India.

She said Wednesday she is disappointed in the NDP government’s decision.

“If this goes ahead, this is the contracting out of public service, which, you know, flies in the face of everything that we believe in,” Jessome said.